The Big Decline Will Accelerate in Stocks Around The World
On May 2 , 2011 the US stock market made a high . It declined in first step down to 10400 in early October. From there we had a rally to 12284 which happened on Oct 28, 2011 in step 2 and the Step 3 down started from there.The step 3 itself has 5 steps down and each of
those steps also have 5 parts.( This is discussed more fully in our book.) First part of this 3rd leg down was completed on Nov. 1 at a value of 11634. We have had a rally from that level to end today at 12188 which is end of part 2. We have now started part 3 down which can take the DJI soon to 11000 to 11100. After usual short rallies we will go below 10400 which was the low in early October.
DJI 2011-11-08 Close
We already have started a big depression in Europe which will be followed by recession in USA in 2012. It cannot be stopped no matter what European Govts or US Federal Reserve or US Government does in the next 12 months.(There are some commentators
who call this decline as a recession in Europe.When unemployment is more than 20% this is Depression. Soon it will affect us all.)
Italy is the key and if you see the 10 year bond rate. It is already above 7.4%
Italian 10 year Bond2011-11-09_0424
